Apple has followed AT&T, and has reduced the price of its iPhone 3GS (8GB) handset. When purchasing the phone with a two year AT&T contract, customers can get the iPhone 3GS for $49.

The news comes ahead of the expected release of a Verizon iPhone, which many believe will be announce on January, 11. Since last Friday, AT&T customers have been able to get an iPhone 3GS with a contract for $49. Now, potential buyers can purchase the iPhone direct from Apple’s site, for the same price.

Currently, the iPhone 4 starts at $199 for a 16GB handset (with a two year AT&T contract). The 32GB version of Apple’s latest iPhone is available for $299.

For more information, you can check out the prices of the iPhone 3GS and iPhone 4 in Apple’s U.S. Online Store. And, be sure to let us know your thoughts on the price change in the comments.